Announcing the "Announcement Effect Club"

Since CRFB called for a Fiscal Recovery Plan in July, a growing number of prominent economists, organizations, and opinion leaders have joined us in suggesting we create a viable fiscal plan now to be implemented as the economy recovers. To this end, we are compiling a handy-dandy list of members of the newly formed "Announcement Effect Club."

As we explained in July, the U.S. could aid the economic recovery without exacerbating a debt crisis by “continu[ing] with stimulus policies as necessary, but… announc[ing] a plan to reduce the deficit and close the long-term fiscal gap.” The Peterson-Pew Commission of Budget Reform reiterated this point in Red Ink Rising, discussing that “the ‘announcement effect’ of such a commitment, if credible, can have positive economic effects by signaling that the United States is serious about reducing its debt.”

In other words, while aggressive debt reduction in the short term might imperil the fragile recovery, the announcement of future deficit reduction can actually strengthen it.

Without further ado, here are the inductees into the Announcement Effect Club in chronological order. If you have a nominee for the club, let us know:

* Members of the CRFB Board are: Bill Frenzel, Tim Penny, Charlie Stenholm, Maya MacGuineas, Barry Anderson, Roy Ash, Charles Bowsher, Steve Coll, Dan Crippen, Vic Fazio, Bill Gradison, Jr., William Gray, III, William Hoagland, Douglas Holtz-Eakin, James Jones, Lou Kerr, Jim Kolbe, James Lynn, James McIntyre, Jr., David Minge, Jim Nussle, June O'Neill, Marne Obernauer, Jr., Rudolph Penner, Peter G. Peterson, Robert Reischauer, Alice Rivlin, Martin Sabo, Eugene Steuerle, David Stockman, Paul Volcker, Carol Cox Wait, David Walker, and Joseph Wright, Jr.

Individual statements of CRFB members include: